3 Reasons Taking Car Insurance Is So Important in Malaysia

When you purchase a vehicle in Malaysia, auto insurance is a necessity by law. Under the Malaysian Road Transport Act 1987, all vehicles on the roads need to have valid motor insurance. Every vehicle owner must buy and renew their third party car insurance on an annual basis in order to renew their road tax for the vehicle. This is enforced by the Malaysian traffic police who ensure that all vehicles on the road carry a valid road tax sticker. Anyone caught driving a vehicle without a valid road tax can be fined up to RM3,000 depending on court’s decision. But even if you are willing to risk the fine, here are three compelling reasons to buy motor insurance and keep it renewed.

Protecting your driving license

According to Section 90 of Road Transport Act 1987, you must own at least third party car insurance. If you are caught by the traffic police without insurance papers, then your car license will be suspended for 12 months or until the court has made further decision. It is a serious offence in Malaysia to be caught driving without a valid driving license, and you will have to pay fine of up to RM 1,000 and/or three months in jail.

Paying for damage in the event of an accident

If you are responsible for damage to someone else's car in the event of an accident, then you can protect yourself from third party damage with your car insurance policy. When you are at fault and caused damage or physical injury to the other party, then your third party auto insurance will protect you from costly claims. The third party can make claim from your insurance company and get compensated for all the damages or loss in the event of an accident. Even the costs for the hospitalisation of the victims can be claimed from your insurance company.

Preventing unpredictable circumstances

Take comprehensive car insurance and protect yourself from damages to your car caused by natural disasters (hurricane, tornado, or flood). It also covers theft, vandalism, fire, and even damage caused by falling objects. You can be rest assured that you will be covered for any damages to your vehicle if you have insurance of third party, fire & theft or a comprehensive coverage. Note: It may cost you more to pay for comprehensive coverage every month.

While buying car insurance is a necessary step after you purchase a car, it can sometimes be a complicated and off-putting process with the many types of insurance options available in the market today. Therefore, you should research well and compare car insurance quotes from different auto insurance companies in Malaysia before making your final decision.

Peter is a technical writer and insurance customer service officer. He writes for online blogging sites mainly related to auto insurance and car insurance.